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B2B PROCUREMENT PERSPECTIVE
What content are customers waiting for?
manu.matthyssens@solvint.com
Page 2
Bringing your marketing & sales approach in a pro-active way
in line with the purchasing evolution of your client base
Supplier sales mirror Client purchasing Mirror
Page 3
Purchasing strategy – cascade
Company strategy
Objectives & KPIs
Purchasing strategy
Objectives & KPIs
Category strategy
Objectives & KPIs
Supplier
Objectives & KPIs
Page 4
Impact towards purchasing
• xx
• xx
• xx
• xx
• xx
• xx
1
2
3
Business
strategy
Purchasing
strategy
Supplier/SCM
strategy
Page 5
A great opportunity to build sustainable/solution/LT business
www.solvint.com
Page 6
Purchasing growth path
Commercial
orientation
Transaction
orientation
Process
orientation
Supply chain
orientation
Value chain
orientation
Procurement
coordination
1 2 3 4 5 6
Functional focus Cross functional focus
Contribution
to competitive
advantage
Time
From Price to Cost focus From TCO to Value focus
Availability Price Synergy XF Sourcing Integration Value
Transactionally
integrated
Internally
integrated
Externally
integrated
Source: Van Weele & Rozemeijer
Page 7
Evolution towards solutions !
Page 8
four rings of innovation
business model innovation
product & service innovation
process innovation
technology innovation
SUPPLIERS
ARE THE
KEY TO
INNOVATION !
Turnover ratio
Page 9
A significant portion of our growth will come from
innovation, delivering leading-edge products into the
marketplace. We anticipate that around half of this
innovation will come from our supply chain.
That's why we invest in mutually-beneficial relationships with our key
suppliers so we can share capabilities and co-innovate for shared
growth. With some of our more strategic suppliers, we nurture open
relationships, with our research and development teams working with
theirs to jointly pursue new technologies and innovations that will make a
difference.
Our partners often do business with other companies that operate in the
same competitive markets as we do. That's why we pride ourselves on
doing business differently, moving away from traditional forms of
buying/selling relationships. Pioneering new ways of doing business so we
can partner to win.
If you believe you can help us deliver on innovation please contact your
Unilever Procurement Manager to discuss opportunities.
http://www.unilever.com/aboutus/supplier/innovation/
Innovation
partners
Page 10
Safety supply case
Impact on .....................
PRODUCT + SERVICE
innovation
Page 11
Home office
employee
Head office
Flex workspace
Flex rent, parking
with recharger 1
CNG filling station
Regional
office
Fuel(card) station
CNG - Electricity
Bike station
with facilities
Railway
station
Railway
station
abonnement
Company
bike
Company
car
Cambio spot
Customer
‘billing’
Business model
innovation
Page 12
6/05/2015
WHAT KIND OF INNOVATIONS/BUSINESS
CASES/BEST PRACTICES
CAN YOU BRING IN A PROACTIVE WAY
TOWARDS PROFESSIONAL BUYERS?
Page 13
Page 14
Other costs
40 mio
Purchasing
60 mio
Turnover
105 mio
Total costs
100 mio
Profit
5 mio
Turnover
105 mio
Margin
4.7 %
Turnover
105 mio
Total assets
50 mio
Rotation
speed
2.1
ROI
9.9%
* 58.8 mio
98.8 mio
* 6.2 mio
* 5.9 %
12.4%
+25%
1
2
3
RONA
ROCE
HOT SHOWER
Or
COLD SHOWER
4
Dupont
Page 15
Specification/
requirements
Purchase
Price
Material Cost
Supplier
Labour cost
Supplier
Overhead
Profit
Transport Usage Maintenance Logistics Resell
Total Cost of Ownership
Product Value Engineering
•Improved (cost-down)
Purchase specifications
•Input for internal cost
reductions.
•Support for Proposal
Evaluation.
•Basis for cost based targeting
•Input for outsourcing dilemmas
•Negotiation Arguments
•Input for supplier cost
reductions.
•Support for Proposal
Evaluation.
•Basis for cost based targeting
•Input for outsourcing dilemmas
Total cost of ownership
Page 16
OPEN KIMONO
www.solvint.com
Page 17
Page 18
What is value for your customer?
-OUTPUT/DELIVERABLE/SOLUTION-
 Know how combined with results
 Resources delivering
 Expertise combined with results
 First time right
 Speed: time to solution, time to market
 Customer trends / wants
 Technology
 Product/Spec improvement, development & Innovation
 Impact on customer responsiveness
 Prototyping
 Quality
 Cfr Toyota 5 years warranty
 Back to back coverage
 Production continuity
Page 19
What is value? Some examples
 Product offering
 One stop shop
 Product + service
 Solution
 Reducing need for internal follow up/resources
 Flexibility
 Avoidance of capital tied up
 Resulting in lean cash flows
The ultimate value
Direct contribution to sales results
Page 20
WHAT IS YOUR OUTPUT PROMISE
SPECIFICATION
REQUEST FOR
INFORMATION
REQUEST FOR
PROPOSAL
CONTRACTING
SUPPLIER
MANAGEMENT
NEGOTIATION
Deliverables
KPI’s
VALUE
UPFRONT SLA
TRADITIONAL SOURCING PROCESS
OUR NEEDS
OURSPECS ?
Page 21
Companies need ‘Solutions’ & clear output
not just ‘specs’ and products or services
Page 22
Page 23
What are the key remaining risks for your customers?
How to cover this?
guarantees & contract
Page 24
Bringing your marketing & sales approach in a pro-active way
in line with the purchasing evolution of your client base
Supplier sales mirror Client purchasing Mirror
Page 25

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14 30 u manu matthyssens b2-b mkt 2015 the procurement perspective

  • 1. B2B PROCUREMENT PERSPECTIVE What content are customers waiting for? manu.matthyssens@solvint.com
  • 2. Page 2 Bringing your marketing & sales approach in a pro-active way in line with the purchasing evolution of your client base Supplier sales mirror Client purchasing Mirror
  • 3. Page 3 Purchasing strategy – cascade Company strategy Objectives & KPIs Purchasing strategy Objectives & KPIs Category strategy Objectives & KPIs Supplier Objectives & KPIs
  • 4. Page 4 Impact towards purchasing • xx • xx • xx • xx • xx • xx 1 2 3 Business strategy Purchasing strategy Supplier/SCM strategy
  • 5. Page 5 A great opportunity to build sustainable/solution/LT business www.solvint.com
  • 6. Page 6 Purchasing growth path Commercial orientation Transaction orientation Process orientation Supply chain orientation Value chain orientation Procurement coordination 1 2 3 4 5 6 Functional focus Cross functional focus Contribution to competitive advantage Time From Price to Cost focus From TCO to Value focus Availability Price Synergy XF Sourcing Integration Value Transactionally integrated Internally integrated Externally integrated Source: Van Weele & Rozemeijer
  • 8. Page 8 four rings of innovation business model innovation product & service innovation process innovation technology innovation SUPPLIERS ARE THE KEY TO INNOVATION ! Turnover ratio
  • 9. Page 9 A significant portion of our growth will come from innovation, delivering leading-edge products into the marketplace. We anticipate that around half of this innovation will come from our supply chain. That's why we invest in mutually-beneficial relationships with our key suppliers so we can share capabilities and co-innovate for shared growth. With some of our more strategic suppliers, we nurture open relationships, with our research and development teams working with theirs to jointly pursue new technologies and innovations that will make a difference. Our partners often do business with other companies that operate in the same competitive markets as we do. That's why we pride ourselves on doing business differently, moving away from traditional forms of buying/selling relationships. Pioneering new ways of doing business so we can partner to win. If you believe you can help us deliver on innovation please contact your Unilever Procurement Manager to discuss opportunities. http://www.unilever.com/aboutus/supplier/innovation/ Innovation partners
  • 10. Page 10 Safety supply case Impact on ..................... PRODUCT + SERVICE innovation
  • 11. Page 11 Home office employee Head office Flex workspace Flex rent, parking with recharger 1 CNG filling station Regional office Fuel(card) station CNG - Electricity Bike station with facilities Railway station Railway station abonnement Company bike Company car Cambio spot Customer ‘billing’ Business model innovation
  • 12. Page 12 6/05/2015 WHAT KIND OF INNOVATIONS/BUSINESS CASES/BEST PRACTICES CAN YOU BRING IN A PROACTIVE WAY TOWARDS PROFESSIONAL BUYERS?
  • 14. Page 14 Other costs 40 mio Purchasing 60 mio Turnover 105 mio Total costs 100 mio Profit 5 mio Turnover 105 mio Margin 4.7 % Turnover 105 mio Total assets 50 mio Rotation speed 2.1 ROI 9.9% * 58.8 mio 98.8 mio * 6.2 mio * 5.9 % 12.4% +25% 1 2 3 RONA ROCE HOT SHOWER Or COLD SHOWER 4 Dupont
  • 15. Page 15 Specification/ requirements Purchase Price Material Cost Supplier Labour cost Supplier Overhead Profit Transport Usage Maintenance Logistics Resell Total Cost of Ownership Product Value Engineering •Improved (cost-down) Purchase specifications •Input for internal cost reductions. •Support for Proposal Evaluation. •Basis for cost based targeting •Input for outsourcing dilemmas •Negotiation Arguments •Input for supplier cost reductions. •Support for Proposal Evaluation. •Basis for cost based targeting •Input for outsourcing dilemmas Total cost of ownership
  • 18. Page 18 What is value for your customer? -OUTPUT/DELIVERABLE/SOLUTION-  Know how combined with results  Resources delivering  Expertise combined with results  First time right  Speed: time to solution, time to market  Customer trends / wants  Technology  Product/Spec improvement, development & Innovation  Impact on customer responsiveness  Prototyping  Quality  Cfr Toyota 5 years warranty  Back to back coverage  Production continuity
  • 19. Page 19 What is value? Some examples  Product offering  One stop shop  Product + service  Solution  Reducing need for internal follow up/resources  Flexibility  Avoidance of capital tied up  Resulting in lean cash flows The ultimate value Direct contribution to sales results
  • 20. Page 20 WHAT IS YOUR OUTPUT PROMISE SPECIFICATION REQUEST FOR INFORMATION REQUEST FOR PROPOSAL CONTRACTING SUPPLIER MANAGEMENT NEGOTIATION Deliverables KPI’s VALUE UPFRONT SLA TRADITIONAL SOURCING PROCESS OUR NEEDS OURSPECS ?
  • 21. Page 21 Companies need ‘Solutions’ & clear output not just ‘specs’ and products or services
  • 23. Page 23 What are the key remaining risks for your customers? How to cover this? guarantees & contract
  • 24. Page 24 Bringing your marketing & sales approach in a pro-active way in line with the purchasing evolution of your client base Supplier sales mirror Client purchasing Mirror